Perrigo Co. PLC has agreed to buy Belgium-based Omega Pharma NV in a bid to expand its portfolio of over-the-counter drugs and broaden its market presence throughout Europe.
The companies said the deal was valued at 3.6 billion euros, or $4.5 billion, which includes 2.48 billion euros in equity and 1.1 billion euros in debt. About 25% of the equity price will be paid in Perrigo stock to Omega founder Marc Coucke, while the remaining 75% will be funded through a combination of cash and debt, they added.
Perrigo said it has secured a 1.75 billion-euro bridge loan from J.P. Morgan Chase Bank and Barclays.
Omega, the fifth-largest entity in the $30 billion European OTC market, made about $1.6 billion in revenue in the 12-month period ended Sept. 30, the companies said. It boasts a portfolio of about 2,000 products, including treatments for colds, pain and gastrointestinal problems.
Perrigo said it expects the deal to be immediately accretive to its adjusted per-share earnings, with double-digit accretion coming during its 2016 fiscal year.
The companies expect the acquisition to close in the first quarter of next year.
Also Thursday, Perrigo unveiled weaker-than-expected results for the most recent quarter.
For the period ended Sept. 27, the company posted $96.3 million in profit, or 72 cents a share, down from $111.4 million, or $1.18 a share. Excluding certain items, per-share earnings were $1.40.
Net sales rose about 2% to $951.5 million.
Analysts polled by Thomson Reuters had projected $1.44 a share in earnings and $998 million in revenue.
By Michael Calia